Does Google Image Search Violate Copyright Law?

Perfect10, an adult industry website, has sued Google claiming that Google Image Search is violating its copyright. For those who haven’t tried it, Google Image Search is a terrific resource. One can search the web for images, which appear as thumbnails on the search results page. EFF, which has filed an amicus brief in the case, argues on its website:

Thumbnails created by Google Image Search allow users to identify information they are looking for online and then access that information—much like an electronic card catalog. As certain information about images can only be conveyed visually, there is no other feasible way to provide image search on the Internet than capturing images, transforming them into thumbnails, and then displaying them on a search results page for users.